Cognizant Technology Solutions Corp Class A (CTSH)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	2,689,000	2,651,000	2,763,000	2,946,000	2,968,000	3,014,000	2,945,000	2,881,000	2,826,000	2,559,000	2,433,000	2,204,000	2,114,000	2,275,000	2,468,000	2,745,000	5,403,000	8,130,000	14,628,000	21,004,000
Revenue (ttm)	US$ in thousands	19,353,000	19,434,000	19,394,000	19,414,000	19,428,000	19,366,000	19,253,000	18,932,000	18,507,000	17,914,000	17,413,000	16,828,000	16,652,000	16,752,000	16,757,000	16,898,000	16,783,000	16,628,000	16,458,000	16,323,000
Gross profit margin		13.89%	13.64%	14.25%	15.17%	15.28%	15.56%	15.30%	15.22%	15.27%	14.28%	13.97%	13.10%	12.70%	13.58%	14.73%	16.24%	32.19%	48.89%	88.88%	128.68%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,689,000K ÷ $19,353,000K
= 13.89%

The gross profit margin of Cognizant Technology Solutions Corp. has shown a gradual decrease over the past eight quarters, declining from 36.95% in Q1 2022 to 34.56% in Q4 2023. This downward trend indicates that the company's profitability on sales has been under pressure. The decrease in the gross profit margin may be attributed to various factors, such as increased competition, higher operating expenses, or pricing pressures in the market. It is essential for the company to closely monitor and address the factors contributing to this declining trend to sustain profitability in the long run.